Intellectual Property Glossary

address for correspondence

For patents IP Australia allows a separate address for correspondence. IP Australia will send all correspondence about your application to this address. It can be any address that suits, and does not have to be in Australia. You should notify IP Australia if this or the address for service changes.

address for service

The address in Australia where IP Australia will send all your correspondence. This may be a post office box. You must nominate an address in Australia for correspondence, even if your own address is not in Australia . You should notify IP Australia if this address changes.

amortisation

The expense that applies to intangible assets, in the same way depreciation applies to non-current assets.

asset

Anything a person or company owns or is entitled to, such as cash, investments or money due. With respect to companies, their assets include everything from furniture and equipment to property, inventories (stock) and accounts receivable as well as intellectual property such as patents and trade marks.

ATMOSS

The IP Australia trade mark register database. The database lists all the registered and pending marks, together with marks which have been refused registration, lapsed or removed from the database.

Australian Business Number (ABN)

An identification number issued by the Australian Taxation Office that is unique to a business entity.

Australian Securities and Investment Commission (ASIC)

The Australian Government regulatory body that enforces and administers Corporations Law and consumer protection laws for investment, life and general insurance, superannuation and banking (except lending) throughout Australia.

automatic rights

In Australia , copyright and circuit layout rights are automatic rights. These rights come into effect at the moment of creation. No formal registration is necessary to protect these IP rights.

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business angel

Individuals who invest in businesses looking for a higher return than they would see from more traditional investments. In return for their investment they often are highly involved in the business. Usually they are the bridge from the self-funded stage of the business to the point that the business needs the level of funding that a venture capitalist would offer. Funding estimates vary, but usually range from $150,000 to $1.5 million.

business name

A name under which a business operates. Registration serves as a means of identifying the owners of the business and is obtained under state or territory legislation. Registration of a business name does not automatically give formal trade mark protection.

business plan

A document setting out what a business proposes to do, and how it proposes to do it, written for management and capital-raising purposes.

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capital gains tax (CGT)

A tax on the increase in the capital value of investments, payable when the capital gain is realised. Capital gains tax is indexed so that nominal increases in value due to inflation are not also taxed.

cashflow

The net amount of money received by an individual or company over a certain period of time.

circuit layout rights

Circuit layout rights automatically protect original layout designs for integrated circuits and computer chips. While these rights are based on copyright law principles, they are a separate, unique form of protection.

claims (patent)

Concise written statements that define the invention covered by the patent application. The patent protects what falls within that definition. Anything outside the claims is not protected.

classes

Goods and services are divided into classes and trade marks are registered in the classes that cover the goods and services to which the trade mark will be applied.

commercialisation

Planning how you will take your good idea to the marketplace. It involves working the idea into your business plan, consideration of protection options and considering how to market and distribute the finished product.

common law trade mark

An unregistered trade mark, essentially an IP right acquired by use in trade, and forming part of the goodwill of a business.

company name

The name ascribed to a corporate entity incorporated within the Commonwealth of Australia. This may not necessarily be the ‘business name’ that the company trades under.

complete specification

This is the basis for your patent. It must describe your invention fully, detail the best way of putting your invention into effect and include at least one claim.

confidential information

Information and materials of commercial or personal value kept secret from the general public.

confidentiality agreement

An agreement between a person possessing confidential information and the person to whom that confidential information will be disclosed.

copyright

Copyright protects the original expression of ideas, not the ideas themselves. It comes into existence automatically and gives you the right to control and exploit the copying of your original works of art, literature, music, films, broadcasts and computer programs.

copyright notice

A copyright notice indicates that the work is protected and identifies the copyright owner. It consists of the copyright symbol ©, the name of the owner and the year of creation or first publication. For sound recordings the p in a circle symbol is used.

costs

The expenses defined by the relevant IP legislation which can be awarded against any party in proceedings before that authority.

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damages

The amount which a Court awards the owner of IP rights for infringement of those rights by another person.

database

Information stored in a structured way, especially electronically, and accessible by searching, e.g. a company’s client list, the patents and trade marks databases of IP Australia.

debt finance

Funding that must be paid back in a certain timeframe. Banks normally provide this type of funding.

design registration

Protects the way manufactured products look. Design refers to the features of shape, configuration, pattern or ornamentation, which can be judged by the eye in finished products.

domain name

A domain name is the unique name that corresponds with an Internet Protocol address. It should be both easy and intuitive to remember. For example, IP Australia’s domain name is www.ipaustralia.gov.au (.gov = government, .au = Australia ).

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enforcing your rights

Taking action against a person who infringes your IP rights.

equity finance

Finance provided by venture capitalists that take an equity share in the investee company.

exclusive licence

A licence where the licencee is given the right to commercialise the IP to the exclusion of all others, including the licensor.

exclusive rights

IP rights are ‘exclusive’, in that they give their owners the right to prevent others from exploiting their IP without permission.

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franchisee

A person or entity to whom the right to conduct a business is granted by the franchisor or licensor.

franchisor

The person or entity owning the rights or licence of the business. A franchisor is the person who grants the license or permission to the various franchisees.

franchising

A particular form of licensing arrangement in which IP and/or a business system of a franchisor is used under licence by other traders—the franchisees—typically with a degree of support (e.g. marketing support, supply of stock) and control by the franchisor.

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goodwill

An intangible asset representing the value that a business has over and above the value of its tangible assets (eg buildings, stock) and other intangible assets (eg accounts receivable, IP registrations), due to its business activities and the reputation acquired through them.

grace period (patents)

In relation to patents, this means the period before the filing of a patent application in which, in certain circumstances, public disclosure of an invention will not affect the validity of a subsequent patent (in Australia a complete application must be filed within 12 months of the disclosure but where a grace period is provided in other countries the time allowed and other conditions may be different).

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IFRS (International Financial Reporting Standards)

Often known by the older name of International Accounting Standards (IAS), IFRS are a set of accounting standards. They are issued by the International Accounting Standards Board (IASB).

income tax

Tax payable on income earned.

infringement

Infringement occurs when someone willingly or unwillingly uses your intellectual property without your permission.

innovation patent

A form of protection available in Australia for comparatively minor innovations and improvements. Protection is available for up to 8 years. For suitable subject matter, innovation patents require only novelty and an “innovative step” to be valid.

intangible assets

An asset that is saleable, though not a material or physical asset. IP rights are intangible assets created by human intellectual and/or inspirational effort and enjoy special legal recognition and protection.

intellectual property (IP)

Intellectual property is property generated through intellectual or creative activity. Types of intellectual property include patents, trade marks, designs, confidential information/trade secrets, copyright, circuit layout rights and plant breeder’s rights.

IP

See intellectual property

IP audit

A systematic review of the IP owned, used or acquired by a company.

IP Australia

The Federal Government agency that administers patents, trade marks and design rights within Australia . IP Australia is part of the Innovation, Industry, Science and Research portfolio.

IP insurance

Insurance policy aimed at providing some protection for the holder of IP rights against the costs of either starting or fighting infringement proceedings.

IP register

The collection of records maintained by relevant government agencies covering all applications for and grants of registration of a particular class of IP. Registers provide a large volume of publicly available technical knowledge. IP Australia maintains three of these registers for Australian patents, trade marks and designs.

IP rights

The right to prevent use by others of your intellectual property, e.g. patents, designs, copyright, trade marks, circuit layout rights, plant varieties or confidential information.

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joint venture

An arrangement involving at least two business entities joining together for a specific business purpose, e.g. exploitation of particular IP rights, to enhance the productive potential of both companies.

May involve a new entity part owned by each participant (incorporated joint venture) or a contractual arrangement only (unincorporated joint venture).

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license

To grant authoritative permission to use, but not own, IP rights, as prescribed in a licensing agreement.

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marketing plan

A marketing plan defines a market and explains how the business will promote itself. The marketing plan could involve advertising, public relations, sponsorships and other promotional strategies.

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opposition

A procedure whereby an application made to a patent, designs or trademark office (such as IP Australia) can be challenged by a third party and ruled on by that office. Can lead to refusal of applications for registration.

outsourcing

The act of contracting one or more suppliers external to a business to undertake a specific task/s.

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passing off (trade marks)

Where a business has registered a trade mark and another business sells goods or provides services under the same or similar trade mark without permission from the first business, possibly resulting in an infringement of the registered trade mark.

patent

An exclusive right to exploit an invention commercially, granted for a limited term in return for public disclosure of the invention. See also innovation patent and standard patent.

patent application

A document filed by an inventor or applicant with IP Australia that discloses and claims an invention and that requests that the patent office grant the inventor or applicant the right to exclude others from practicing the invention.

patent attorney

A professional qualified in a scientific or technical discipline, trained in intellectual property law and practice, and licensed to prepare applications for registration of IP rights, and to advise on IP-related matters.

patent pending

Term applicable where a patent has been applied for but not yet granted.

patent search

A systematic study of the patent literature, to find out (for example) whether an invention is patentable, whether a proposed method or product will infringe someone else’s patent, the state of the art in a particular field.

plant breeder’s rights

Plant breeder’s rights are used to protect new varieties of plants by giving exclusive commercial rights to market a new variety or its reproductive material.

priority

Concept in IP law whereby the first to take a particular action is entitled to a right that excludes others who may have innovated later. For example, in most countries, if two people apply independently for a patent on the same invention, the earlier application has priority and so can prevent the second succeeding.

proprietary right

An inherent right of an owner of intellectual property and real property to use and enjoy the property to the exclusion of all others.

provisional patent application

An application for a patent that is made to secure priority only. It gives no rights against infringers, but allows the priority date to be preserved for patent applications (in Australia and most other countries or an international application) made within 12 months for the same invention. This allows additional time for the applicant to determine if the commercial potential of the invention warrants continuing the patenting process.

public domain

Generally, you must not ‘use’ or ‘publish’ your IP before application for formal protection, or it will be in the ‘public domain’.

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registered trade mark

A trade mark that has been registered in a country’s trade marks office (eg IP Australia) and being owned by a particular trader in respect of particular goods. A registered trade mark gives you the exclusive legal right to use, license or sell it within Australia (and any other country in which it is registered) for the goods and services for which it is registered.

royalty

A royalty is compensation paid to the owner of a right for the use of that right, for example, the fee paid by a licensee to a licensor. A royalty is usually payable as a portion of proceeds from sales, but may also be a lump sum or in some other form.

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seed capital

Capital provided by venture capitalists to start-up companies that are unable to access conventional debt finance.

software licence

A licence over software which may provide the licensee with the opportunity to commercialise software. There is also an end user licence for software, which enables the customer to use the software—not sell or commercialise it.

sole licence

A licence where the licensee is the only entity licensed to use the IP, but where the owner also retains the right to use it themselves.

standard patent

A patent for inventions that meet specified requirements including novelty and an inventive step, granted for a term of up to 20 years.

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tax effective structures

Company structures that enable you to take the best advantage of the current taxation system.

trade mark

A trade mark is a sign used to distinguish goods and/or services of one trader from those of another. It can be a word or phrase, logo, label, combination of letters and/or numbers, an aspect of packaging, or even a smell, sound or shape.

trade mark attorney

A professional qualified in trade mark law and practice and licensed under the Trade Marks Act to advise and assist clients in trade mark related matters.

trade mark notice

Symbols used in conjunction with a trade mark to denote:

• a pending or unregistered trade mark ™; or

• a registered trade mark ®.

Trade Practices Act 1974

The Trade Practices Act aims to enhance the welfare of Australians through the promotion of competition and fair-trading and provision for consumer protection.

trade secret

Information known to a trader and kept out of the public domain for business advantage. The law protects against damage done to a business through unauthorised disclosure of trade secrets, but not against independent discovery of the trade secret.

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valuation

Valuation is the process of allocating a dollar value to all the resources (assets) your business owns and that you expect will benefit you in the future. IP is one such asset.

venture capital

Money made available for investment in innovative enterprises, in which both the risk of loss and the potential for profit may be considerable.

venture capitalist

Person/s who provide venture capital in exchange for equity in the company.

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